City Council
Report
City Council Meeting: March 25, 2025
Agenda Item: 4.G
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To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Subject: Resolution Amending the Policy Regarding Acceptance of Gifts by Councilmembers, and Introduction and First Reading of an Ordinance Amending Municipal Code Section 2.32.290 Prohibiting Acceptance of Gratuities
Recommended Action
Staff recommends the City Council consider the following to allow Councilmembers to accept tickets to events where they are attending in their official capacity in support of the City’s economic development efforts:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Adopting a Resolution amending the policy regarding Councilmember’s acceptance of gifts.
3. Introduce for First Reading an Amendment to SMMC 2.32.290 prohibiting acceptance of gratuities.
Summary
Council previously adopted a Resolution placing limits on acceptance of gifts over $100, as well as an ordinance banning acceptance of gratuities from persons from whom Council has approved a public benefit within the last twelve months. Council requested the City Attorney prepare amendments to the policy that would allow Council to accept tickets to events that support the City’s economic development efforts.
Discussion
In October 2024, the Council adopted an ordinance banning the acceptance of gratuities (anything of economic value intended as a gift or favor intended as a reward 2 of 3
or token of appreciation for an official act) from anyone from whom the Council had conferred a public benefit within the last twelve months. In February 2025, the Council adopted a prohibition on acceptance of gifts over $100 in a single instance, with some exceptions.
Frequently the Council is requested to attend events in their official capacity. While some City-sponsored and City co-produced events are free to the public, some are not.
Event producers, working in partnership with the City, request Councilmembers attend these events to provide formal welcomes, meet and greets, photo ops, and ribbon cuttings. Many events have ticket prices that exceed $100, and event producers frequently provide free tickets to City officials as an incentive to attend the event.
A key part of the City’s economic development strategy is to continue to bring highprofile events to the City, to support economic recovery and visitor attraction. Given the effort to closely align these events with the City of Santa Monica brand and to maintain the value of the personal touch and welcome the City of Santa Monica provides, it is important for our elected officials to be able to attend these events.
Rules on acceptance of gifts and gratuities are intended to ensure public officials act in the public’s best interest, not in their personal interest, and that decisions are made transparently and free of undue influence. Adding these exceptions to the gratuities ordinance and gift policy do not detract from that goal, and will ensure the Council is able to support the economic recovery efforts of the City by attending events in their official capacity, while continuing to uphold the ethical integrity the policies are intended to capture.
A survey of gift policies in other cities revealed the following:
• Los Angeles – Prohibits gifts from lobbyists, limits gifts from restricted sources (those doing business or seeking to do business with the city) to $100 per year. • San Francisco – Prohibits gifts from restricted sources. • Oakland – $50 limit on gifts from restricted sources. $250 general gift limit from a single source per year.
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Other cities surveyed (San Diego, San Jose, Long Beach, Fresno, Sacramento) follow FPPC gift guidelines (require reporting of gifts over $50, may not accept gifts over $630 from a single source in a year).
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.
Prepared By: Katie Doerr, Deputy City Attorney III
Approved Forwarded to Council
Attachments:
A. CC-Council Gifts-Reso
B. CC-Council Gratuities-Ord